Shoe Zone upbeat on profits as trading improves
In the briefest of brief trading updates (all of 77 words), budget footwear retailer Shoe Zone issued some good news about the business environment and profits on Friday.
It said that since the publication of its interim results on 16 May, “trading has exceeded expectations due to particularly strong recent trading through May and early June. This is a combination of strong early demand for summer products and lower container rates contributing to improved margins”.
As a result, the company now expects adjusted profit before tax for the financial year ending 2 October 2023 to be not less than £10.5 million.
Less than a month ago, the company had delivered a “robust and positive performance” in its half-year to 1 April, in the face of “consumer uncertainty and macroeconomic volatility”.
That had come hot on the heels of a number of updates from other companies that talked about the tough environment out there.
Despite operating 52 fewer stores than a year ago, total revenues increased 7.9% with store revenues up 6.8% and digital revenue increasing.
But adjusted profit before tax in that half-year had been only £2.5 million, down from £3.1 million, a year earlier.
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